Economic Indicators and Efforts for Sustainability slide image

Economic Indicators and Efforts for Sustainability

Credit Costs and Disclosed Non-performing Loans for the First Half of Fiscal 2022 (Bank Consolidated) Credit Costs (4.6) Credit costs were down ¥4.6 billion year on year due to a decrease in provision of reserve for general loan losses as a result of reversal of provision for COVID-19 measures, and a decrease in amortization of non-performing loans owing to decreased bankruptcies Since the total amount of provision of reserve for general loan losses and provision of reserve for specific loan losses is negative, reversal of allowance for loan losses is recorded in the financial statements. However, it is not shown in the table on the left for the purpose of comparative analysis with the past results. Credit costs by factor (Units: Billions of yen) Fiscal 2022 Fiscal 2020 Fiscal 2021 First Half First Half First Half YOY Credit costs total 2.1 13.3 3.9 4.3 (0.7) Provision of reserve for general loan 0.7 9.5 0.3 (0.7) (2.5) (2.8) losses Amortization of non-performing loans 1.6 4.4 3.8 5.7 1.9 (1.9) Bankruptcies 0.3 0.5 1.4 1.4 0.0 (1.4) Downgrades, etc. 2.6 6.2 3.4 6.5 3.3 (0.1) Upgrades and collections (1.7) (2.8) (1.5) (2.8) (1.6) (0.1) Other Group companies 0.4 0.5 0.5 0.6 0.2 (0.3) Recoveries of written off claims (-) 0.1 0.6 0.2 0.5 0.1 (0.1) [Reference] Credit management expense ratio (Nonconsolidated*) 0.06% 0.26% 0.14% 0.08% (0.03)% (0.17)P (*) Credit management expense ratio = Credit costs (Bank Nonconsolidated) / Average loan balance (Bank Nonconsolidated) Ratio of Disclosed Non-Performing Loans Amounts and ratios of disclosed non-performing loans under the Financial Reconstruction Act (Units: Billions of yen) Fiscal 2020 Fiscal 2021 First Half Fiscal 2022 First Half YOY Loans to bankrupt or effectively bankrupt borrowers Doubtful assets 3.8 2.0 1.9 1.7 (0.3) 54.2 59.0 63.3 66.3 +7.3 Although amounts of disclosed non-performing loans have been on an increasing trend amid the Credit subject to specific risk management 16.8 23.9 23.7 24.3 +0.4 Total disclosed non-performing loans 74.8 85.0 89.1 92.4 +7.4 COVID-19 pandemic, ratio of non-performing loan continued at a low level of 1.67%. Ratio of disclosed non-performing loans 1.42% 1.62% 1.66% 1.67% +0.05P Copyright 2022 lyogin Holdings, Inc. All Rights Reserved. -5-
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